Baruch College Section: NFA

The City University of New York Principles of Finance

FIN 3000
Principles of Finance
This course provides students with a rigorous introduction to the
fundamental principles of finance. The primary concepts covered
include the time value of money, principles of valuation and risk, and
the nature and characteristics of domestic and international financial
securities and markets. Specific applications include the valuation of
Course Description
debt and equity securities and capital budgeting analysis.

Prerequisite: ECO 1001, ECO 1002, STA 2000, and ACC 2101

Credits: 3

Instructor: Xiaoyu Zhu

Email: xiaoyu.zhu@baruch.cuny.edu (Not baruchmail)

Classroom: VC 10-180

Office: VC 10-285

Office hours: Fridays, 1:00 – 2:00 PM or by appointment

Phone: 646-312-3480

Notice This course syllabus is subject to change.

Course Learning Goals

Time Value of Money Students will understand how compounding and discounting concepts
are utilized when calculating the value of money. Students then will
be able to estimate the prices of bonds and stocks.
Risk and Return Students will understand the concept and measurement of risk.
Students will study the relationship between risk and return of assets.
Characteristics of Students will understand the key characteristics of different financial
Domestic and securities and markets, across different countries. Students will be able
International Financial to identify security types based on the characteristics given.
Securities and Markets
Baruch College Section: NFA
The City University of New York Principles of Finance

Assurance of Learning
Analytical Skills Students will possess the analytical and critical thinking skills to
evaluate issues faced in business and professional careers.
Technological Skills Students will possess the necessary technological skills to analyze
problems, develop solutions and convey information.
Communication Skills: Students will have the necessary oral communication skills to convey
Oral ideas and information effectively and persuasively.
Communication Skills: Students will have the necessary written communication skills to
Written convey ideas and information effectively and persuasively.
Civic Awareness and Students will have the knowledge base and analytical skill to guide
Ethical Decision- them when faced with ethical dilemmas in business. Students will have
making an awareness of political, civic and public policy issues affecting
business.
Global Awareness Students will know how differences in perspectives and cultures affect
business practices around the world.
Proficiency in a Single Students will possess a deep understanding of and intellectual
Discipline competence in at least one business discipline.

BBA Majors: Finance

Corporate Finance Students will develop an understanding of the key concepts of time
value of money, corporate finance models for project valuation, and
basic capital structure and dividend theory.
Investments Students will be able to define and calculate standard risk and return
measures, value simple equity and bonds securities, and explain the
modern portfolio theory and the capital asset pricing model.
Derivatives Students will understand the basic applications of derivatives in
investments and corporate finance and will be able to discuss the
characteristics of derivative products.
Data Analysis Students will be able to analyze data and estimate models for project
valuation to support business decisions
Baruch College Section: NFA
The City University of New York Principles of Finance

Required Materials
Text Book (Baruch College) Principles Finance FIN 3000 Selected Chapters
Connect 1st edition. The book is available at:

http://shop.mheducation.com/mhshop/productDetails?isbn=1260301184

The bookstore also carries the custom edition. This edition is around $80
after tax. You do not need the “fancy” $180 complete version.
The book contains an activation code to Connect, the online tool that we
will be using throughout the semester. The register link for this class is:

http://connect.mheducation.com/class/x-zhu-spring-2019-fin-3000

Registration will be open on Jan 6, 2018. Copy and paste this address to
your web browser. You should see a large “Welcome” sign on the left.
On the right, there should be (from top to bottom) book name, instructor
(make sure it is me, Xiaoyu Zhu), book image and information
(remember this book looks a little different than the one you will
purchase). Then you should see “Enter your email to join this class:”.
Simply input your email address (Baruch email accounts are preferred)
and hit “BEGIN” to proceed to the create account step. Please create the
account based on your true information (I need this information to upload
your grade on Blackboard). Without the activation code, you can use this
website for a short period of time. After you have received the text book,
you can input the activation code and you will have access to this course
for the whole semester.
Calculator A financial calculator is necessary for this class. We will have
quantitative financial questions that require the use of a financial
calculator. Texas Instruments BA II Plus is the best choice (You do not
need to buy the professional version). I will show you how to use this
calculator in class. You MUST bring your own financial calculator to
exams. If you are not willing to purchase a financial calculator or you
forget it on an exam day, remember that the calculators are available to
borrow from the library. I will not lend you a calculator on an exam
day.
Baruch College Section: NFA
The City University of New York Principles of Finance

Course Structure and Policies

Class Sessions Class sessions combine
• Topic lectures
• Problem solving
Homework Homework will be assigned on Connect. Each homework is offered with two
trials. You can work either individually or with your classmates. Remember
you must submit your answers to receive the credit. Late homework will not
be accepted. No extensions will be given.
Excel Project See Appendix A for details.
Exam Policies 1. Midterms will be given in-class. There will be two midterms. Midterms
will not be cumulative and will be related to recent studies. Each midterm
accounts for 25% of your grade. Each midterm is 1 hour and 15 minutes.
2. Final exam will be cumulative. It will account for 30% of your grade. Final
will be departmental. See Appendix B for specific topics.
3. Exams will be given in different versions. Each time you only need to
answer one of the different versions.
4. Exams will be in multiple choices. Scantrons will be provided. No late
scantrons will be accepted.
5. Exams will be in closed-book fashion. A formula sheet will be provided
by the instructor, along with scratch papers. You only need to bring
pencils, erasers, a financial calculator, and your Baruch student ID. Please
be sure that all phones are powered off and put away. Restroom breaks are
allowed, but your cellphone(s) must be left behind with the instructor
during the restroom break.
6. If you are late for the exam, you will still have to turn in the exam at the
regular exam ending time. Students who come in late more than 30
minutes (midterm) or 1 hour (Final) are not allowed to take the exam. If
you miss an exam, you can only take the make-up exam if you provide a
‘valid document proof’. The make-up exam will generally be harder than
the one you miss.
Attendance Attendance will account for 5% of your grade. I will allow for two absences.
Any pre-approved absence will not be included in these two times. You need
to email me before class to get approved. Each additional absence will lower
your grade by 1% until you lose all 5% of your attendance grade. Late
absence excuses will not be accepted. If you miss a considerable amount
of the classes, I will treat it as a factor of your grade
Other Polices 1. Blackboard and email will be used primarily for announcements. Please
check your email and Blackboard frequently to keep in pace with the
class.
2. Class documents will be available on Blackboard or Connect.
3. Electronic devices are allowed in class but must be muted.
4. Food and drinks are allowed in class but must be consumed subtly.
5. There will be a short break each class, around 10 – 15 minutes.
Baruch College Section: NFA
The City University of New York Principles of Finance

Grading Policies
Homework 10%
Excel Project 5%
Attendance 5%
Midterm 1 25%
Midterm 2 25%
Final Exam 30%
Total 100%

Grading Criteria
Grades Grades Percentage GPA
A 93% – 100% 4.00
A- 90% – 92.9% 3.67
B+ 87.1% – 89.9% 3.33
B 83% – 87% 3.00
B- 80% – 82.9% 2.67
C+ 77.1% – 79.9% 2.33
C 73% – 77% 2.00
C- 70% – 72.9% 1.67
D+ 67.1% – 69.9% 1.33
D 60% – 67% 1.00
F 59.9% and below 0.00
Baruch College Section: NFA
The City University of New York Principles of Finance

Chapters Covered
Chapter 1 Goals and Governance of the Corporation
Chapter 2 Financial Markets and Institutions
Chapter 3 Accounting and Finance
Chapter 4 Measuring Corporate Performance
Chapter 5 The Time Value of Money
Chapter 6 Valuing Bonds
Chapter 7 Valuing Stocks
Chapter 11 Introduction to Risk, Return, and the Opportunity Cost of Capital
Chapter 12 Risk, Return and Capital Budgeting

Class Schedule (Preliminary)

Class 1 Jan 25 Course Organization and Chapter 1
Class 2 Feb 1 Chapter 2 and Chapter 3
Class 3 Feb 8 Chapter 3 and Chapter 4
Class 4 Feb 15 Chapter 4 and Chapter 5
Class 5 Feb 22 Midterm 1 and Chapter 5
Class 6 Mar 1 Chapter 5
Class 7 Mar 8 Chapter 6
Class 8 Mar 15 Chapter 6
Class 9 Mar 22 Chapter 6 and Chapter 7
Class 10 Mar 29 Chapter 7
Class 11 Apr 5 Chapter 7
Class 12 Apr 12 Midterm 2 and Chapter 11
Apr 19, Apr 26 Spring Break
Class 13 May 3 Chapter 11 and Chapter 12
Class 14 May 10 Chapter 12 and Review
Final (Departmental, Time and Location TBD)
Baruch College Section: NFA
The City University of New York Principles of Finance

Academic Integrity
The Department of Economics and Finance fully supports Baruch College's policy on Academic
Honesty, which states, in part:
Academic dishonesty is unacceptable and will not be tolerated. Cheating, forgery,
plagiarism and collusion in dishonest acts undermine the college's educational mission
and the students' personal and intellectual growth. Baruch students are expected to bear
individual responsibility for their work and to uphold the ideal of academic integrity.
Any student who attempts to compromise or devalue the academic process will be
sanctioned.
Additional information can be found here.
Any infringement of this rule will be treated as a serious violation of Academic Integrity. Any
suspected academic dishonesty in this regard will result in a grade of F on the exams and most
likely an F in the course as well. Students should also understand that a report of suspected
academic dishonesty will be sent to the Dean of Students’ office and becomes a permanent part
of the student’s file.

Students with Disabilities and Other Special Needs

Students with disabilities are supported in their academic studies by Baruch College’s
Office of Services for Students with Disabilities according to their Mission Statement:

The Office of Services for Students with Disabilities exists to provide reasonable
accommodations to students with disabilities to ensure they have equal access to the
college’s programs and services. Through student intake, faculty consultation, and
outreach to the community, students can develop interpersonal, social, vocational and
emotional growth.

Students who feel that they may need a reasonable accommodation based on a disability should
contact the staff at the Office of Services for Students with Disabilities, Newman Vertical
Campus, Room 2-271, or by phone at (646) 312-4590. More information is available on their
website here.
Baruch College Section: NFA
The City University of New York Principles of Finance

Assurance of Learning Chart

Significant Moderate Minimal Not
BBA Learning Goals Part of Part of Part of Part of
Course Course Course Course

Analytical Skills

Technological Skills

Communication Skills: Oral

Communication Skills: Written

Civic Awareness and Ethical

Decision-Making

Global Awareness

Proficiency in a single discipline:

Finance

Assignment Mapping
Assignments Course Learning Goals BBA Learning Goals

Participation Time Value of Money Analytical skills

Risk and Return Proficiency in Finance
Markets and Securities Communication Skills
Characteristics

Excel Project Time Value of Money Technological skills

Risk and return

Lectures Time Value of Money Financial reasoning skills

Risk and Return Global awareness
Markets and Securities Ethical decision making
Characteristics

Exams Time Value of Money Proficiency in Finance

Risk and Return Analytical skills
Markets and Securities Technological skills
Characteristics
Baruch College Section: NFA
The City University of New York Principles of Finance

Appendix A: Excel Project (SAM)

DO NOT CONTACT YOUR PROFESSOR OR RECITATION INSTRUCTOR FOR
ASSISTANCE OF ANY KIND RELATED TO EXCEL PROJECTS – DIRECT
YOUR QUESTIONS TO THE EXCEL HELPDESK
(http://blogs.baruch.cuny.edu/excelhelp)

The Excel Project

The Excel Project consists of 4 projects to be completed via the SAM online platform.
These projects are intended to improve your Excel skills and familiarize you with
business spreadsheet applications.

The last submission date for ALL projects is May 6th, 2019. No extension will be
given after May 6th, 2019.

Grading Rules. Successful completion of the 4 projects will constitute 5% of your final
FIN 3000 grade. The projects are self-graded and you’ll have 3 trials to complete each
one of them. Assignments submitted with scores of 80% and above will receive full
credit for the assignment (i.e. 100/100 points). On-time assignments that score less than
80% will receive the exact credit earned (i.e. a score of 75% on an assignment submitted
on time will be recorded as 75/100 points). Late submissions are now allowed; students
will lose 1 point per day that the assignment is late. Also, late assignments will receive
the exact credit earned if the adjusted total falls below 80% (e.g. a late assignment with a
score of 84% and 5 days late will be recorded as [79=84-5]/100 points).

Please note: Windows Excel 2016 is the best version to work on all the SAM
assignments as we are using SAM 2016, which was developed around Windows Excel
2016. You can choose to use Mac or other Windows Excel versions, but we will not be
responsible for the possible grading errors that are caused by using versions other than
Windows Excel 2016. You can find Windows Excel 2016 on all PCs in Baruch students
labs.

Due dates. Late Submissions are allowed, with points deducted accordingly as
explained in Grading Rules. The last submission date for ALL projects is May 6th,
2019. No extension will be given after May 6th, 2019.

Assignment Schedule date Due date

Project 1: Pivot Tables and Charts First day of February 15st
classes
Project 2: Revenue Analysis First day of March 8th
classes
Project 3: Financial Projection First day of March 29th
classes
Project 4: Macros First day of April 19th
classes
Baruch College Section: NFA
The City University of New York Principles of Finance
Pricing. You need to purchase access to the SAM platform in order to complete the
projects. The cost is $40. Once purchased, your SAM account will be active until you
graduate and you’ll be able to access Excel projects in other classes in the future. If you
have a SAM account from a previous class, simply login to SAM (you do NOT need to
purchase access again) and join your new class (see instructions below).

Obtaining access to SAM if you already have a SAM Login:

1. Go to http://sam.cengage.com.
2. Enter your username and password, and then click “Log In”. (If you have forgotten
your password, click “Forgot your password?” and enter your username. You will be
asked to answer your secret security question and a reset password link will be sent to
your email address).

Obtaining access to SAM if you are a NEW USER:

1. Go to http://www.cengage.com/micro/7340MC to purchase your access code.

2. Buy the digital stand-alone product for $40.
3. Once you have obtained your access code, go to http://sam.cengage.com and click the
New User button.
4. Enter your Institution Key. The Institution Key for Baruch College is T2031850.
5. Insert your SAM Access Code that you purchased in Step #1.
6. Create your Profile. Please use your Baruch email address and official roster
name when you create your profile! (Not using your Baruch email address may lead
to issues when merging your SAM grade into your final grade.) Enter a secret question
and answer that will be used for security purposes should you forget your password.
Confirm your profile information and accept the License Agreement.
7. If the Username you enter exists in CengageBrain, a prompt displays so you can enter
your CengageBrain password. If you cannot retrieve your password using the Forgot
your password? link, you can create a new SAM account with a different Username.
8. If you have problems with any of these steps you can find a PowerPoint presentation
on blackboard with instructions.

Once you have access to SAM (for NEW or EXISTING USERS)”

1. Join a Section. If not already enrolled in a section, click the “Sections” tab at the top
of the screen. Click “Join a Section”, and locate your section (FIN 3000) and term
(Spring 2019), then click the blue arrow icon in the “Join Section” column on the
right. You MUST join the section to see your assignments.
2. Access your Assignments. Click on Activity List on the top navigation bar to retrieve
the assignments (“Projects”) scheduled for your section. You can access the Excel
Tutorials (“Training”) for help in completing the assignments. You also have access to
21 voluntary projects with no deadlines. (“Projects”).
3. You must have the latest Flash Player installed to see assignments. If necessary, go
here to download and install: http://get.adobe.com/flashplayer/.
Baruch College Section: NFA
The City University of New York Principles of Finance
4. You must have pop-up windows ENABLED for the SAM site in order to see your
assignments.

Viewing the SAM tutorials before doing the projects increases your chances of a
successful and quicker project completion. Completing the voluntary projects will
significantly improve your Excel skills which are invaluable both in your future
academic and professional career.

Academic Integrity. SAM detects files shared with other students and generates a report
for the instructors with the names of plagiarizing students and all parties involved. Students
caught cheating will be reported to the Office of the Dean of Students for disciplinary
action.

Troubleshooting. Several resources are available to you should you encounter any
problems:

Blackboard. As a student enrolled in this class, you also have an access to the
Excel Project’s dedicated Blackboard Spring 2019 Excel Module for FIN 3000
(Baruch). This website contains additional materials and links that will help you
navigate the SAM website and complete your projects. We will also post the
answers to students’ questions there and remind you about the assignment
deadlines.

SAM Help Desk. Students with questions about SAM can access the help desk
either of two ways: through Blackboard (content: "Excelhelp") or at
http://blogs.baruch.cuny.edu/excelhelp. The help desk is supported by PhD
students familiar with SAM and the SAM projects. Emails will be answered daily,
Monday-Friday. If many inquiries arise about a common issue, then responses will
be posted on Blackboard.

Technical Support. For any problems accessing or using SAM contact Technical
Support at:
Phone: 1-800-354-9706 (Mon-Thurs, 8:30am to 9:00pm EST & Friday, 8:30am to
6:00pm EST) or Chat (24/7) or E-mail (24/7): http://www.cengage.com/support/

Excel tutors. Student Academic Consulting Center (SACC) will provide tutors
who are trained in your assigned SAM projects and can help you learn how to use
Excel. To schedule an appointment, visit https://www.baruch.cuny.edu/sacc. To
sign up for a tutoring session, enter your SACC login information if you have
already created an account otherwise follow the step to register with SACC. Select
the SAM Software Projects Tutoring.

Walk-in workshops. The SACC tutoring center will offer workshops on using
Excel with SAM the week BEFORE every project is due. We will send reminders
as to the date, time and place of each workshop via Blackboard. To sign up for a
Baruch College Section: NFA
The City University of New York Principles of Finance
workshop, go to https://www.baruch.cuny.edu/sacc. Enter your SACC login
information if you have already created an account; otherwise follow the steps to
register with SACC. Select the SAM Software Projects Workshop from the drop-
down list and choose the session that you would like to sign up for from the
calendar.

Internet browsers. It is recommended that you use Chrome, Safari or Firefox with
SAM. Avoid Internet Explorer.

DO NOT CONTACT YOUR PROFESSOR OR RECITATION INSTRUCTOR FOR

ASSISTANCE OF ANY KIND RELATED TO EXCEL PROJECTS – DIRECT
YOUR QUESTIONS TO THE EXCEL HELPDESK
(http://blogs.baruch.cuny.edu/excelhelp)
 Baruch College Section: NFA
The City University of New York Principles of Finance

Appendix B: Selected Final Topics

compute topic comment

1 PV single payment
2 FV single payment
3 I single payment
4 N single payment
5 PV at time 0 perpetuity
6 R perpetuity
7 Payment perpetuity
8 PV at time t perpetuity
9 PV ordinary annuity
10 FV ordinary annuity
11 N ordinary annuity
12 I ordinary annuity
13 Pmt ordinary annuity
14 PV annuity due
15 FV annuity due
16 N annuity due
17 I annuity due
18 Pmt annuity due
infrequent annuity (e.g., 1 payment every 2
19 PV years)
infrequent annuity (e.g., 1 payment every 2
20 FV years)
infrequent annuity (e.g., 1 payment every 2
21 N years)
infrequent annuity (e.g., 1 payment every 2
22 I years)
infrequent annuity (e.g., 1 payment every 2
23 Pmt years)
24 EAR from APR with different finite compounding frequencies
25 EAR from APR continuous compounding
EAR from rate per
26 period with different finite compounding frequencies
EAR from rate per
27 period continuous compounding
28 APR from EAR with different finite compounding periods
APR from rate per
29 period with different finite compounding periods
30 APR from EAR continuous compounding
APR from rate per
31 period continuous compounding
 Baruch College Section: NFA
The City University of New York Principles of Finance
may be broken into
32 Pmt (1st annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
33 Pmt (2nd annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
34 N (1st annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
35 N (2nd annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
36 PV (1st annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
37 PV (2nd annuity) saving for retirement problem w/ 2 annuities separate MC questions
may be broken into
38 FV (1st annuity) saving for retirement problem w/ 2 annuities separate MC questions
39 capital gain yield stocks - any
holding period
40 return stocks - any
41 dividend yield stocks - any
42 P(0) stocks - constant growth
43 R stocks - constant growth
44 Div(1) stocks - constant growth
45 P(t) stocks - constant growth
46 Div(t) stocks - constant growth
47 capital gain yield stocks - constant growth
holding period
48 return stocks - constant growth
49 dividend yield stocks - constant growth
stocks - constant growth, dividend starts in
50 P(0) future
51 P(0) stocks - 2 stage growth
52 P bonds - semiannual coupons
53 N bonds - semiannual coupons
54 YTM bonds - semiannual coupons
55 Pmt bonds - semiannual coupons
56 Current yield bonds - semiannual coupons
57 Coupon rate bonds - semiannual coupons
58 P zero coupon bond
59 N zero coupon bond
60 YTM zero coupon bond
61 Exp. R based on scenarios and probabilities
62 Ave R based on history of N observations
63 s based on history of N observations
64 portfolio R N stocks
 Baruch College Section: NFA
The City University of New York Principles of Finance

65 portfolio  N stocks
66 risk premium given R and Rf
market risk
67 premium given Rm and Rf
68 R capm
69 risk premium capm - given , Rm, Rf
70  capm - given R, Rm, Rf
71 Rm capm - given R, , Rf
72 Rf capm - given R, , Rm
conceptual
73 questions TVM
conceptual
74 questions stocks
conceptual
75 questions bonds
conceptual risk and return, including but not limited to: expected return, required
76 questions return, types of risk, diversification, portfolio risk and return, etc.